CARSON CITY, Nev., Sept. 23, 2010 (GLOBE NEWSWIRE) -- Tactical Air Defense Services, Inc. (OTCBB:TADF), an Aerospace/Defense Services contractor that offers tactical aviation services, aerial refueling, aircraft maintenance, disaster relief services, and other Aerospace/Defense services to the United States and foreign militaries and agencies, is pleased to announce that it is has acquired the exclusive contractual right to purchase six Canadian CF-5 Fighter Jets and related assets (the "CAD Assets") from Crown Asset Distribution, Minister of Public Works and Government Services, Canada.
The CAD Assets have a market value of greater than $69 million, and include:
- 6 CF-5 Aircraft
- Spare Parts Lots
- 45 General Electric J85-15 Jet Engines
The total cost to TADF to purchase, import and refurbish the CAD Assets, including the acquisition cost of the contractual right to purchase the CAD Assets, is less than $6 million.
The CF-5 aircraft is the Canadair licensed version of the American Northrop F-5 aircraft built primarily for the Canadian Armed Forces. The CF-5 is a low-cost, low-maintenance, and extremely versatile fighter jet that can be used to provide a tactical support role, as a light attack strike fighter and a reconnaissance platform, and for dissimilar air combat training, lead-in tactical fighter training, and in an adversary role, in support of tactical aviation contracts.
TADF intends to use the CAD Assets to capture new tactical aviation service contracts and maintenance contracts, with the U.S. Department of Defense and foreign militaries:
-- CF-5 Aircraft:
- CF-5 Aircraft: Support existing TADS/Tac-Air tactical aviation service contracts
- Capture new tactical aviation service contracts
- Minimum of 200 hours per aircraft per year
- Hourly rate to government of approximately $7,500 per flight hour
-- CF-5 Parts:
- Support TADS CF-5 aircraft for 20 years
- Surplus sold in conjunction with international aircraft maintenance contracts
- Manufacturing template for CF-5 parts supply business to ensure ongoing supply
-- CF-5 Engines:
- Support TADS CF-5 aircraft for 20 years
- Surplus sold either as whole units or in parts
TADF is currently pursuing a collateralized loan of $6 million secured by the CAD Assets with an over-collateralization ratio of greater than ten times. TADF believes but cannot guarantee that it will receive the funds necessary to purchase all of the CAD Assets.
Alexis C. Korybut, Chief Executive Officer of TADF, stated, "We are very pleased that after more than a year of working on this very important transaction, we have finally accomplished what may prove to be a watershed event for TADF. The acquisition of the CF-5 Fighter Jets will enable TADF to bid on larger and more profitable tactical aviation contracts and aircraft maintenance contracts, and the sale of surplus spare parts and engines may provide a significant source of income to TADF for years to come, in addition to materially increasing the assets on our balance sheet."
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Forward Looking Statement Disclosure
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations and assumptions upon which they are based are reasonable, we can give no assurance that such expectations and assumptions will prove to have been correct. Some of these uncertainties include, without limitation, the company's ability to perform under existing contracts or to procure future contracts. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including without limitation, successful implementation of our business strategy and competition, any of which may cause actual results to differ materially from those described in the statements. We undertake no obligation and do not intend to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.
CONTACT: The WSR Group Investor Relations: Gerald N. Kieft (772) 219-7525 IR@theWSRgroup.com www.theWSRgroup.com